Wells Fargo Predicts New Record Highs for FAANG Stock

By Emma Gilkey / September 27, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on tech company Micron Technology, Inc. (NASDAQ:MU), luxury retailer Michael Kors Holdings Ltd (NYSE:KORS), and online streaming entertainment concern Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes on shares of MU, KORS, and NFLX.

Micron Showered With Price-Target Hikes Post-Earnings

Micron Technology has received no fewer than nine price-target boosts after reporting better-than-expected third-quarter earnings, and issuing a strong forecast for the current quarter. Some of the loftiest target revisions came from Needham (to $76 from $50), Stifel (to $64 from $62), and Susquehanna (to $54 from $50). MU is up 5.6% at $36.10 this morning, trading just below last week's fresh 15-year high of $36.60.

Just like MU options traders, analysts were already showing heightened optimism towards the semiconductor stock ahead of last night's well-received earnings report. Currently, 17 out of 18 analysts call Micron shares a "strong buy" or "buy."

KORS Scores Another Bullish Brokerage Note

Canaccord Genuity upgraded KORS to "buy" from "hold" before the bell this morning, along with a price-target increase to $58 from $43. The bullish analyst notes are adding up fast for KORS; today's nod comes just one day after Wells Fargo issued its own price-target hike to $49 from $47. The luxury stock is up 2.2% at $48.05, setting a new year-to-date high in the process.

Despite the strong price action, options traders aren't exactly rushing into bullish bets on KORS. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KORS stock sports a 50-day put/call volume ratio of 1.83, which ranks in the 96th percentile of its annual range. This suggests options traders have rarely shown a stronger preference for puts over calls in the past year.

Wells Fargo, Options Traders Eye New NFLX Highs

Wells Fargo initiated coverage on NFLX with an "outperform" rating and $230 price target -- implying expected upside of more than 28% from last night's close at $179.38. Additionally, this price target stands about 20% above the stock's July 21 record high of $191.50. At last glance, the FAANG stock is up 1.8% at $182.54, extending this week's bounce from its 50-day moving average.

At the ISE, CBOE, and PHLX, Netflix stock carries a 10-day call/put volume ratio of 1.41, which ranks in the 85th annual percentile. This indicates that calls have been bought to open over puts at a faster-than-usual clip -- and, just like Wells Fargo, some of those speculators are banking on new record highs for NFLX.

Recent News

Uranium volatility after Russia's US export restrictions

November 25, 2024 / www.canadianminingreport.com

Gold stocks rebound on metal bounce and equity rise

November 25, 2024 / www.canadianminingreport.com

Crypto market size continues to catch up with gold

November 18, 2024 / www.canadianminingreport.com

Crypto stealing some of gold's thunder

November 18, 2024 / www.canadianminingreport.com

Gold stocks drop on metal price decline

November 11, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok